You own a stock that you think will produce a return of 11 percent in a good economy and 3 percent in a poor economy

1.

You own a stock that you think will produce a return of 11 percent in a good economy and 3 percent in a poor economy. Given the probabilities of each state of the economy occurring, you anticipate that your stock will earn 6.5 percent next year. Which one of the following terms applies to this 6.5 percent?    A.  arithmetic return B.  historical return C.  expected return D.  geometric return E.  required return Refer to section 13.1

2.	Suzie owns five different bonds valued at $36,000 and twelve different stocks valued at $82,500 total. Which one of the following terms most applies to Suzie's investments?    A.  index B.  portfolio C.  collection D.  grouping E.  risk-free Refer to section 13.2

3.

Steve has invested in twelve different stocks that have a combined value today of $121,300. Fifteen percent of that total is invested in Wise Man Foods. The 15 percent is a measure of which one of the following?    A.  portfolio return B.  portfolio weight C.  degree of risk D.  price-earnings ratio E.  index value Refer to section 13.2

4.	Which one of the following is a risk that applies to most securities?    A.  unsystematic B.  diversifiable C.  systematic D.  asset-specific E.  total Refer to section 13.4